Handout plan faces seven-month delay

Handout plan faces seven-month delay
An event is organised to support the Pheu Thai Party’s 10,000-baht digital wallet at the party’s headquarters on Oct 17 after more than 100 noted Thai economists urged the government to drop the scheme. (Photo: Somchai Poomlard)

The digital wallet scheme, the government’s flagship policy, will face a seven-month delay and is expected to be launched around September next year, according to a prime minister’s adviser.

Speaking at a forum organised by the Senate to discuss the handout scheme, Pichai Chunhavajira insisted the policy was necessary to stimulate the economy but was unlikely to be implemented in February as planned.

The scheme, which is expected to be funded by the annual budget, will face a seven-month delay and is slated for September, he said.

Mr Pichai said the policy will be adjusted to reduce its scope following concerns from many quarters, and so the number of eligible people is estimated to be around 40 million.

The 4km radius restriction in which the digital money can be spent is likely to be revised to cover an entire district to ensure the money is spread evenly, he said, adding the Pao Tang application may be used for the scheme because developing a new one is time-consuming.

Former deputy finance minister Pisit Lee-atham said the handout scheme is not sustainable and the money should be spent on development projects that will increase people’s productivity.

The government should try to reduce costs and spur people’s capacity to produce rather than giving them money and hoping that it will bring about sustainable growth, he told the forum.

Mr Pisit also suggested that the government listen to the Budget Bureau. Otherwise, the project’s implementation will risk violating fiscal discipline.

Meanwhile, Ongart Khlampaiboon, acting deputy leader of the Democrat Party, said on Facebook that the government’s inability to find the money to finance the scheme showed that the ruling Pheu Thai Party did not think the policy through.

He said narrowing down the programme possibly shows the government was struggling to find the funding for the scheme.

He called on the prime minister to specify where the money would come from.

Last week, a sub-committee overseeing the project implementation recommended limiting the handout using income or savings as the criteria.